Correlation Between Golden Bridge and Dawonsys CoLtd
Can any of the company-specific risk be diversified away by investing in both Golden Bridge and Dawonsys CoLtd at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Golden Bridge and Dawonsys CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Bridge Investment and Dawonsys CoLtd, you can compare the effects of market volatilities on Golden Bridge and Dawonsys CoLtd and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Golden Bridge with a short position of Dawonsys CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Bridge and Dawonsys CoLtd.
Diversification Opportunities for Golden Bridge and Dawonsys CoLtd
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Dawonsys is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Golden Bridge Investment and Dawonsys CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawonsys CoLtd and Golden Bridge is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Golden Bridge Investment are associated (or correlated) with Dawonsys CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawonsys CoLtd has no effect on the direction of Golden Bridge i.e., Golden Bridge and Dawonsys CoLtd go up and down completely randomly.
Pair Corralation between Golden Bridge and Dawonsys CoLtd
Assuming the 90 days trading horizon Golden Bridge Investment is expected to under-perform the Dawonsys CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Golden Bridge Investment is 1.6 times less risky than Dawonsys CoLtd. The stock trades about -0.09 of its potential returns per unit of risk. The Dawonsys CoLtd is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,034,000 in Dawonsys CoLtd on September 4, 2024 and sell it today you would lose (17,000) from holding Dawonsys CoLtd or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Bridge Investment vs. Dawonsys CoLtd
Performance |
| Timeline |
| Golden Bridge Investment |
| Dawonsys CoLtd |
Golden Bridge and Dawonsys CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Bridge and Dawonsys CoLtd
The main advantage of trading using opposite Golden Bridge and Dawonsys CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Bridge position performs unexpectedly, Dawonsys CoLtd can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dawonsys CoLtd will offset losses from the drop in Dawonsys CoLtd's long position.| Golden Bridge vs. Visang Education | Golden Bridge vs. CKH Food Health | Golden Bridge vs. Samyang Foods Co | Golden Bridge vs. Tway Air Co |
| Dawonsys CoLtd vs. Global Standard Technology | Dawonsys CoLtd vs. Koh Young Technology | Dawonsys CoLtd vs. NewFlex Technology Co | Dawonsys CoLtd vs. KG Eco Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets |